The Termination Agreement Form is a crucial document used in Malta when an employer and employee mutually agree to end their employment relationship. It serves as a legally binding document that complies with Malta's Employment and Industrial Relations Act and related employment legislation, including EU directives applicable in Malta. This agreement is particularly important for ensuring a clear and compliant termination process, protecting both parties' interests, and preventing future disputes. It typically includes provisions for final settlements, ongoing obligations, and mutual releases, while addressing specific requirements under Maltese law such as notice periods, statutory payments, and employee rights. The document is adaptable for various employment situations, from entry-level positions to senior executive roles, and can be customized to address specific circumstances such as share schemes, post-termination restrictions, or garden leave arrangements.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and registration/ID numbers
2. Background: Brief context of the employment relationship, including start date, position, and reason for termination
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Termination Date: Clear statement of the employment termination date and last working day
5. Final Payment: Details of final salary, notice pay, and statutory entitlements
6. Return of Company Property: Requirements for returning all company assets, documents, and equipment
7. Confidentiality: Ongoing obligations regarding confidential information and trade secrets
8. Full and Final Settlement: Mutual release of claims and waiver of rights
9. Tax Implications: Statement regarding tax treatment of payments and responsibilities
10. Governing Law: Confirmation that the agreement is governed by Maltese law
11. Execution: Signature blocks and execution requirements
1. Post-Termination Restrictions: Non-compete and non-solicitation clauses, used for senior positions or where there are legitimate business interests to protect
2. Share Options/Benefits: Treatment of existing share options or long-term benefits, included when employee participates in such schemes
3. Reference: Terms regarding future employment references, included when agreed between parties
4. Legal Advice: Confirmation of independent legal advice, recommended for senior employees or complex terminations
5. Ongoing Cooperation: Requirements for future assistance in litigation or investigations, used when relevant to role
6. Garden Leave: Terms of any garden leave period, included when applicable
7. Company Announcements: Agreed communication regarding the departure, important for senior roles
8. Outplacement Support: Details of any career transition services offered, included when part of settlement
1. Schedule 1: Payment Calculation: Detailed breakdown of all payments including salary, notice, leave, and other entitlements
2. Schedule 2: Company Property List: Itemized list of company property to be returned
3. Schedule 3: Benefits Summary: Summary of treatment of various benefits and entitlements
4. Appendix A: Handover Plan: Detailed plan for handover of responsibilities and ongoing projects
5. Appendix B: Post-Termination Obligations: Detailed description of ongoing obligations and restrictions
6. Appendix C: Tax Declaration: Required tax forms and declarations for final payments
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